NEW YORK, Oct. 3, 2018 /PRNewswire/ -- Brixmor Property Group Inc. (NYSE:BRX) ("Brixmor" or the "Company") announced today third quarter 2018 investment and capital markets activity and provided additional information on its expectations related to non-cash GAAP rental adjustments.
"During the third quarter, we successfully closed over $450 million of non-core asset sales at very attractive pricing. I am extremely pleased with the continued execution of the plan we highlighted at our Investor Day last December to raise attractively priced capital in the private market, strengthen our balance sheet, reposition and reinvest in our portfolio and enhance our long-term growth rate. We now expect to sell over $900 million of non-core assets in 2018, which will position us to be balanced as it relates to capital recycling activity in 2019 and beyond, and, combined with our continued progress in leasing and redevelopment, will drive long-term sustainable growth in cash flow for shareholders," commented James Taylor, Chief Executive Officer and President.
INVESTMENT ACTIVITY
Dispositions
- During the three months ended September 30, 2018, the Company generated approximately $453.5 million of gross proceeds on the disposition of 28 assets, including two partial properties, comprised of 3.5 million square feet.
- During the nine months ended September 30, 2018, the Company generated approximately $699.3 million of gross proceeds on the disposition of 44 assets, including two partial properties, comprised of 6.4 million square feet.
- The Company currently expects total 2018 gross proceeds from dispositions of over $900.0 million.
Acquisitions
- During the three months ended September 30, 2018, the Company acquired a building adjacent to an existing center for $1.5 million.
- During the nine months ended September 30, 2018, the Company acquired a building and land adjacent to existing centers and terminated a ground lease and acquired the associated building at an existing center for a combined purchase price of $8.8 million.
- During the three months ended September 30, 2018, the Company repurchased 2.7 million shares of common stock under its share repurchase program at an average price per share of $17.77 for a total of approximately $48.6 million, excluding commissions. Since inception of the share repurchase program in December 2017, the Company has repurchased 5.2 million shares of common stock at an average price per share of $16.78 for a total of approximately $87.7 million, excluding commissions.
CAPITAL STRUCTURE
- As previously announced, during the three months ended September 30, 2018, the Company's Operating Partnership, Brixmor Operating Partnership LP, issued $250.0 million aggregate principal amount of Floating Rate Notes due 2022 with an interest rate equal to three-month U.S. dollar LIBOR plus 1.05% per annum, reset quarterly. The net proceeds from the offering were utilized to prepay a portion of the Company's $600.0 million Term Loan maturing March 18, 2019.
- During the three months ended September 30, 2018, the Company prepaid $507.2 million of secured indebtedness, including amortization, scheduled to mature in 2020 at a weighted average stated interest rate of 6.2%. These prepayments were funded with disposition proceeds, as well with the Company's $1.25 billion revolving credit facility, which had $1.10 billion of availability as of September 30, 2018.
- In connection with the prepayment of indebtedness, the Company will recognize a loss on extinguishment of debt of $19.8 million, or $0.07 per diluted share, which was not included in previously provided expectations for 2018.
- A maturity chart as of September 30, 2018 follows:
Non-cash GAAP Rental Adjustments
- The Company also provided additional information related to non-cash GAAP rental adjustments, which include straight-line rental income, amortization of above- and below-market rent and tenant inducements and straight-line ground rent expense. The Company expects $36.0 – 38.0 million and $25.0 – 28.0 million of non-cash GAAP rental adjustments in 2018 and 2019, respectively.
CONNECT WITH BRIXMOR
ABOUT BRIXMOR PROPERTY GROUP
Brixmor (NYSE:BRX) is a real estate investment trust (REIT) that owns and operates a high-quality, national portfolio of open-air shopping centers. Its 471 retail centers comprise approximately 80 million square feet of prime retail space in established trade areas. The Company strives to own and operate shopping centers that reflect Brixmor's vision "to be the center of the communities we serve" and are home to a diverse mix of thriving national, regional and local retailers. Brixmor is a proud real estate partner to more than 5,000 retailers including The TJX Companies, The Kroger Co., Publix Super Markets, Wal-Mart, Ross Stores and L.A. Fitness.
SAFE HARBOR LANGUAGE
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to the Company's expectations regarding the performance of its business, its financial results, its liquidity and capital resources and other non-historical statements. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
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SOURCE Brixmor Property Group Inc.
